Trade liberalisation and inflow of foreign direct investment (FDI) in India

  • Tarek Tawfik Yousef Alkhateeb
  • , Zafar Ahmad Sultan
  • , Mahmoud Mohamad Fawaz

Research output: Contribution to journalArticlepeer-review

Abstract

With the liberalization of trade regime since 1991 the inflow of FDI in India has substantially increased. The paper aims to examine the effect of trade liberalization on inflow of FDI in India from 1980 to 2015. Using Johansen method, it is found that there is long run cointegration relationship between inflow of FDI, trade liberalization index, gross domestic output, exports and inflation. The result of vector error correction model shows that these factors Granger cause inflow of FDI in the long run but not in the short run.

Original languageEnglish
Pages (from-to)85-93
Number of pages9
JournalInternational Journal of Applied Business and Economic Research
Volume15
Issue number21
StatePublished - 2017

Keywords

  • Export
  • FDI inflows
  • GDP
  • Granger Causality
  • Inflation
  • Trade liberalisation

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